SM ENTERTAINMENT JAPAN Co.,Ltd.
4772・Growth Market・Information & Communication
Governance
Company with a Board of Corporate Auditors. The Board of Directors consists of 4 members, including 1 outside director (outside director ratio of 25%). The company has established a voluntary advisory body called the "Executive Compensation Meeting" (chaired by an outside director, with outside officers comprising a majority of members). No nomination committee has been established. The company recognizes the addition of independent outside directors as an important issue and is considering increasing the number by one.
Risk Management
With the President and Representative Director serving as the officer responsible for overall supervision, the Risk Management and Compliance Committee is convened quarterly to identify and assess risks. Material risks identified are reported to the Management Committee and the Board of Directors, and reflected in business plans and the allocation of management resources. Human capital risk, information security risk, and reputation risk are designated as priority management items, and an internal reporting system (internal and external hotlines) has also been established.
Shareholder Returns
Performance-linked dividend policy. For FY2025 (ending December 2025), a dividend of ¥2 per share (year-end dividend) was implemented. For FY2026 (ending December 2026), a year-end dividend of ¥1 and total of ¥1 is forecast (a decrease of ¥1 year-on-year). Share buybacks are permitted by board resolution under the articles of incorporation.
Dividend Policy
The basic policy is to provide shareholder returns backed by performance, taking into account the financial position and business results comprehensively, in order to achieve mid-to-long-term profit distribution to shareholders. Dividends of surplus are basically paid once a year as a year-end dividend, though interim dividends are also permitted under the articles of incorporation. For FY2025 (ending December 2025), the dividend is ¥2 per share (¥0 at second quarter-end, ¥2 at year-end); the forecast for FY2026 (ending December 2026) is ¥1 per share (¥0 at second quarter-end, ¥1 at year-end). No revision from the earnings forecast.
ESG
No formal sustainability basic policy has been established, but the company promotes "strengthening human capital" and "thorough compliance and risk management" in an integrated manner with its management strategy. In the human capital area, initiatives include referral recruitment, re-employment after retirement, LGBTQ+ support, mental health support (Smart Consultation Room), and harassment training. For FY2026 (ending March 2026), targets have been set of a 70% paid leave utilization rate, an 80% stress check participation rate, and a 100% male childcare leave utilization rate (FY2025 results: paid leave utilization rate of 48%, male childcare leave utilization rate of 100%). No disclosure regarding climate change is provided.
Last updated: March 25, 2026